Tax Collection at Source (TCS) under GST

What is TCS (Tax Collection at Source) under GST


             As per Section 52 of the CGST Act, 2017 the ecommerce operator, not being an agent, is required to collect an amount calculated at the rate not exceeding one per cent., as notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator. The amount so collected is called as Tax Collection at Source (TCS).

               Rate of TCS notified by Government is 0.5% under each Act (i.e. the CGST Act, 2017 and the respective SGST Act / UTGST Act respectively) and the same is 1% under the IGST Act, 2017. Notifications No. 52/2018 – Central Tax and 02/2018-Integrated Tax both dated 20th September, 2018 have been issued in this regard. Similar notifications have been issued by the respective State Governments also.

              E-commerce operator TCS is to be collected once supply has been made through the e-commerce operator and where the business model is that the consideration is to be collected by the ecommerce operator irrespective of the actual collection of the consideration. For example, if the supply has taken place through the ecommerce operator on 30th October, 2018 but the consideration for the same has been collected in the month of November, 2018, then TCS for such supply has to be collected and reported in the statement for the month of October, 2018.



Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

Risks and solutions in Export Business

What is the difference between BAF and CAF 

What is Tail Gate exam hold in US import clearance

How to make DA mode of payment safe

How to make delay in delivery of Shipment?

What is Provisional Assessment in Import formalities in India?

What is said to contain in Bill of Lading. 

What is Manifest Hold by US customs on import 

What is MET exam in US import customs clearance

What is legalization of documents by embassy? 

What is LET EXPORT order in export trade?

Documents required to export from Sri Lanka

Export Customs procedures in Sri Lanka

Licence required to export from Sri Lanka

Import documents required in Sri Lanka

Import Customs procedures in Sri Lanka

Does GST registration number of my firm change time to time in India?

 Is GST registration required for a public sector undertaking?

 Is amendment of GST registration allowed in India?

 Cancellation of GST registration in India

Centralized GST registration of services permitted in India?

 Retired from business ownership. Fresh GST registration in India?

 GST Registration for Job workers in India

Transition provisions under GST

Term Transition credit under GST

Transfer of credit on sale, merger, amalgamation, lease Means

Term transaction value under GST

Threshold Exemption under GST

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers